There are so many emotions around buying your first home after all, it’s the place you’ll call home, will start traditions of your own, and make memories for a lifetime.It's normal to feel the feels when buying a home, that gut feeling or intuition when you find "the one" is a great guiding tool, but it's easy to let those emotions over power logic. To help keep you balanced and on the right financial path during this process we’ve put together some advice to navigate those homebuyer feels.
Identify Your Thoughts, Feelings, and Behaviours
There are three main components that we can identify in most situations: feelings (how we feel), thoughts (how we perceive things), and behaviours (what we do). Using this framework to guide you through different emotions of homebuying will help ensure that you’re making the best financial decision for yourself. Stopping and scanning your emotions regularly asking questions like, “what thought is associated with this emotion” will help keep you moving forward. Let’s say that feeling is panic and the thought behind it is you’ve been searching for a home for months, and you’re feeling the pressure to just buy something. Taking a step back, regrouping with your Advisor and Realtor can be the difference between overpaying for the wrong home and waiting to make the best investment for your future.
Determine Your Non-Negotiables
It’s now time to discover what matters most to you in your house – make a list of your top five must-haves. This could be two bedrooms, a big backyard, closet space, specific neighbourhood, whatever it might be, write it down. This list will help guide your Realtor in narrowing down appropriate houses to show you and keep you in check when viewing.
It’s important to remember that non-negotiables aren’t only related to the home itself, they should also include your price point. Meeting with your Advisor ahead of house hunting will help identify where you are financially and what you can realistically afford. Keep in mind approval doesn’t mean afford.
Don’t stress if right away you aren’t sure of all your non-negotiables or what your future looks like. Sometimes the important things will come after seeing some homes, or they might shift. You might fall in love with a home that isn’t in the area you originally said was a must have. But ask yourself some questions: what changed or how will this impact my lifestyle and future savings goals?
Always Do Your Homework
Emotions are one of the most common areas you can end up paying more than you realistically can afford for a house. On the flip side, it can also cause you to lowball and miss out on houses. Your best strategy is to understand the average selling price of the neighbourhood – that way you know what’s acceptable and what’s not. If you find yourself in a bidding war, it’s important you have a cut-off price before, so you don’t end up in a poor financial situation.
Once you find the one, the important work isn’t over. Your due diligence will help ensure your financial decision doesn’t land you a “lemon” of a house because of hidden problems costing you way more money. Before signing the deed make sure you have home inspection done, insurance quotes completed, and conditions on financing. All of these will help protect you from any of the possible unknowns.
Remember there are always more fish in the sea houses on the market. House hunting is exhausting and comes with a whole new set of emotions and financial risks. Staying grounded and working closely with an Advisor during the process will help ensure you are making a strong financial decision. Book an appointment today to start your homebuying journey.